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Renowned Nigerian music producer Osabuohien Osaretin, popularly known as Sarz, has offered a detailed explanation of why music streaming revenues in Nigeria remain significantly lower compared to earnings in the United States and other Western countries.
Speaking on a recent episode of the Afropolitan podcast, Sarz opened up about the financial realities facing Nigerian artists and producers in the streaming era, shedding light on the economic factors that shape how much creatives earn from platforms such as Spotify, Apple Music, and others.
According to the award-winning producer, the same volume of streams can produce drastically different financial outcomes depending on where those streams originate. He revealed that one million streams from the United States can earn between $3,000 and $5,000, while one million streams generated within Nigeria may only bring in about $300 to $500.
“A million streams from the United States is maybe $3,000 to $5,000. That same one million streams from Nigeria is arguably maybe $300 to $500, but it will cost you the same amount to market or promote a song in Nigeria as much as it would cost you abroad,” Sarz explained.
This imbalance, he noted, creates a tough reality for Nigerian creatives who often invest heavily in promotions, publicity, and marketing, yet receive much lower financial returns from their local audience.
Sarz attributed this stark difference mainly to economic disparities. He explained that streaming platforms pay royalties based on subscription fees and advertising revenues, which vary significantly across regions. In wealthier countries, subscribers can afford higher monthly payments, which directly boosts the revenue pool available for artists and producers.
In contrast, Nigeria’s struggling economy means lower subscription rates and fewer premium users, which ultimately translates into smaller payouts.
“The difference is the economy,” Sarz said. “Subscribers in Western countries pay more because their economies are stronger. That affects how much platforms can pay out per stream.”
Despite Nigeria’s vibrant music culture and strong fan engagement, he stressed that many listeners simply do not have the financial capacity to maintain premium streaming subscriptions. As a result, a large portion of music consumption happens through free or ad-supported tiers, which generate significantly less income.
He pointed out that this situation does not reflect a lack of support for artists, but rather highlights broader economic challenges.
“People are streaming music. The people that can’t stream, can’t afford it. But people listen to music across the country, and if they can’t afford streaming, it just means they don’t have the money to,” he said.
Sarz also addressed the challenges artists face when trying to promote their work. He explained that marketing costs in Nigeria are nearly identical to those in developed markets, despite the much lower revenue potential. From influencer promotions to digital advertising and publicity campaigns, Nigerian musicians often spend substantial amounts to push their songs, yet earn only a fraction of what their counterparts abroad make.
This imbalance, he said, places enormous pressure on local creatives, especially emerging artists who may not have access to international audiences.
Looking ahead, Sarz suggested that meaningful improvement can only come through broader economic development. He believes that when the country’s economy improves, Nigerians will have greater purchasing power, leading to increased subscriptions, higher streaming revenues, and better financial rewards for creatives.
“We are waiting for the state of the country to get better so other things can start improving,” he said. “I think we have done very well with the resources that we have and with all the obstacles against us.”
He added that Nigerian artists, producers, and industry executives have demonstrated resilience, creativity, and innovation despite operating within difficult conditions. However, he stressed that long-term progress depends heavily on structural reforms and economic stability.
“And how do we empower them? Back to the government. So, we are just waiting till the economy gets better,” Sarz stated.
The producer concluded by expressing optimism about the future, noting that Nigeria’s global influence in music continues to expand. He believes that as the economy improves and more listeners gain access to paid streaming platforms, Nigerian creatives will begin to see stronger financial returns that match their global impact.
For now, Sarz’s insights provide a clearer understanding of the financial challenges behind Nigeria’s booming music industry and highlight why local streaming numbers do not always translate into substantial earnings.
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